John Barnes has tipped Liverpool to challenge for trophies next season under Kenny Dalglish.
The midfield legend, who worked alongside Dalglish whilst manager at Celtic, has been impressed by the resurgence of the Reds and believes a couple of summer additions could help take the club to the next level.
"The timescale (of challenging for the league) depends on the quality of the players they can get in," said Barnes.
"If they don't bring much more quality in to this squad, then I don't think they can win the title next year, they can only progress. But with a little bit more investment, getting two or three quality players into the squad, I think they could challenge next year. But it really does depend on who they get."
Reflecting directly on the impact of Dalglish at Liverpool, Barnes believes the manager has managed to get the best out of his players and should be able to secure a Champions League spot next season.
"Since Kenny has been there, they have had a fantastic run. And I feel that they can challenge for a Champions League place next year," continued Barnes.
"I still don't think the current squad is good enough to win the league, but Kenny has maximised the potential of his squad, he is making them play consistently well, and they will definitely be challenging for honours - or at least for a place back in the Champions League - next season.
"The pressure will be on, especially having had the run that they have had since Kenny has been there. People are naturally expecting them to continue into next season and to be right up there, which I believe they can be. However, after the euphoria of Kenny being back, and the last half of the season going so well, we have to be realistic in what we expect for next year."
Barnes, who helped Liverpool to their last title in 1990, also had some kind words for defender Jamie Carragher, who made his 666th appearance for the club on Monday night and is now second on the all-time list of appearance makers for the Anfield outfit.
"It's a fantastic feat for Jamie, and of course I was there when Jamie first got into the side. He worked at his game. He's a development of the Liverpool Academy which is a testament to the Academy because we always say they will produce the best players. He's a fantastic professional."